Documente Academic
Documente Profesional
Documente Cultură
Accounting
Strategic Management
Accounting
Delivering Value in a Changing
Business Environment Through
Integrated Reporting
Sean Stein Smith
Abstract
This book critically analyzes the concept of strategic management accounting, the implications this emerging paradigm will have on the accounting
profession, and the ramifications for businesses at large. While there
has been significant research and publication regarding the concept of
strategic management accounting (SMA), this book approaches the area
in a unique and innovative way. This manuscript approaches the topic
in a way that is unique by linking the concept of SMA to the integrated
reporting framework. In essence, strategic management accounting is a
theory with broad-based support, but the IR framework and reporting
structure provide a vehicle through which progress, costs, and benefits
of a more strategic accounting function can be evaluated. Focusing on
principles, primarily for internal management utilization, the following provides an outline and summary of concepts and techniques that
can be used to elevate the role of the management accounting function.
Whether you are a management expert, an accounting professional, or
simply someone looking to keep up-to-date with emerging business
trends, this text provides the content, and action-oriented steps to meet
those expectations.
Keywords
accounting, finance, integrated reporting, multiple capital model, strategy,
strategic management accounting
Contents
Prefaceix
Acknowledgmentxi
Key Concepts and Themesxiii
Chapter 1 What Is Strategic Management Accounting?1
Chapter 2 Corporate Governance & Sustainability31
Chapter 3 Accounting and Analytics47
Chapter 4 Strategic Management Accounting & the Path
Forward59
Chapter 5 Finance 2.073
Chapter 6 From Concept to Reality95
Chapter 7 Market Examples and Implications127
Chapter 8 Integrated Reporting & the Future of Accounting153
Chapter 9 Strategic Management Accounting: A Path Forward175
References185
Index189
Preface
Accounting is undergoing a transformation and paradigm shift linked
directly to how the profession is perceived both among fellow professionals and by the marketplace at large. Despite the fact that this shift
and the changing nature of the profession have been identified in both
practitioner and academic circles, much work remains. Accountants
and financial professionals must be able to keep pace with the growing
requirements placed on the profession, as well as the new tools and technology available to help these professionals meet their goals. In essence,
a new way of looking at accounting is necessary in order to navigate the
business environment, and a more strategic view is required.
Strategic management accounting is not a new concept. It has existed
within the scholarly literature for several decades. What is new, however,
is the importance of this concept to the current and future viability of
the accounting profession as an industry. While the rising demand for
quantitative information provides numerous opportunities, particularly
as they pertain to sustainability, governance, and other areas of emerging
importance such as human capital and analytics, all these areas also come
with challenges. Data scientists, big data experts, and other p
rofessionals
are seeking to expand their respective spheres of influence within the
business decision-making process.
Accountants must be able to leverage and make effective use of these
new technologies in order to fully embrace the changes coming to the
profession. In essence, accounting must embrace a more strategic and
long-term point of view when it comes to how work product is produced
and distributed to end users. Simply put, accounting has to become more
strategic in concept and in reality. This path forward, of course, is not
the only option available for accounting professionals, but in the humble
opinion of this author, it appears to be the one most closely linked to
reality and the practical implications of the marketplace.
Acknowledgment
This book is dedicated to my family, for their patience and support as this
book took shape.
xiv
CHAPTER 1
What Is Strategic
Management Accounting?
IntroductionThe Importance of Strategic
Management Accounting
Globalization, digitization, and increased competition continue to
increase the competitiveness of the business landscape as well as the pace
of changes. Organizations in virtually every industry, and specifically the
management teams at said organizations, are under scrutiny from an
increasingly broad set of interested parties. Shareholders, activist investors, environmental groups, and other interested external stakeholders
require information and quantitative data in order to evaluate organizational performance. In order to satisfy these requirements, it is important
that management professionals assess and review the appropriate information. Several trends, partially in response to these extrinsic forces, and also
partially in response to transitions occurring organically, are converging
to address these evolving requirements and demands. Integrated financial
reporting, representing an iteration and evolution of several types of nontraditional reporting, blends elements of financial and nonfinancial information including aspects of corporate governance, sustainability, and
risk management at an organizational level. Such a formalized template
provides a platform and vehicle for management accountants to play a
more proactive role in the decision-making process. Designed to be more
forward-looking and comprehensive in nature than traditional reporting,
integrated financial reporting provides a more comprehensive and holistic
view of financial performance and the health of the organization.
Additionally, and more pertinent to the finance and accounting fields,
is the reinvigoration of strategic management accounting (SMA). SMA,
and the recent increase of research and conversation about this concept,
a lack of comprehensive follow through can negatively affect organizations. In the increasingly complicated business environment following
these multiple crises, business management and reporting must evolve.
The underlying business issue appears to be that managerial professionals are uncertain as to how best to address various stakeholder reporting demands. Stated in a different way, there is uncertainty surrounding
the investments in training and implementation of new systems, that is,
will the financial benefits exceed the costs? The specific problem is that
organizations are investing in integrated reporting research and implementation without knowing if it improves financial performance (Roth
2014). One area of guidance is from nontraditional stakeholders, as these
organizations have the potential to more fully integrate the value creation process for organizations, to the benefit of all stakeholders (Garriga
2014). This new paradigm, one of activist stakeholders, requires a new
mindset and framework as to how organizations deploy internal resources
and personnel. Reframing the role of accounting within the organization
allows the finance/accounting function to assist firms in dealing with this
increasingly complicated environment (Skrbk and Tryggestad 2010).
Additionally, there is increasing regulatory and stakeholder interest in
developing standards, and metrics to assist in addressing concerns that
continue to dominate the discussion of the sluggish worldwide recovery
(LeBlanc 2012).
Incidents such as the emissions testing violations at Volkswagen, which
occurred during 2015, demonstrate the continuing need for improved
information, communication, and reporting tools. This applies to both
financial information such as profitability and return on investments
(ROIs), and the operational data that drive the financial results. Management accountants, already embedded within the broader decision-making
process, are uniquely well positioned to assume a more proactive role. It
is important to remember that compliance and other operational information virtually always have a financial bottom-line effect on organizational performance. Linking together operational information, however
plentiful and comprehensive, to reporting systems and methodologies is
not a simple task, and doing so requires the integration of accounting
and accounting systems with other information systems within the organization. Acknowledging the proliferation of stakeholders, the necessity
of increasing stakeholder-oriented reporting, and the increased importance of nontraditional information of business decision making provides an opportunity for accounting professionals. Chief financial officers
(CFOs) are increasingly responsible for not only the financial reporting
and results of the organization, but also for how the organization reports
operational results to various stakeholders. Summarized by Hasan (2015),
the five major categories and areas that CFOs are now held accountable
for include providing accurate and actionable data, bringing speed and
efficiency to the analytic process, leveraging technology (specifically the
cloud), improving the forecasting process, and managing the data security
and risk management of the organization.
Clearly, the role of the CFO, as well as the direct reports of the CFO,
continues to evolve and shift in response to marketplace demands and
realities. Accounting professionals must obtain and refine the skills necessary to not only remain up-to-date on accounting regulations, but also
to take advantage of the opportunities present in emerging areas. Elevating both professionals working in individual organizations, as well as
the accounting profession itself, to a role more akin to strategic business
partner, is a transition that is currently underway. The transition of the
accounting role, however, is merely a symptom of a larger shift in the way
businesses operate, and how organizations engage with each other as well
as with end users.
It can be argued that the only true value that the accounting and
finance functions can deliver to the enterprise is the value of good information, that is, the information that can be leveraged and utilized to
make better business decisions. Transforming operational data into financial information for decision making is a key aspect of business and strategic planning, and accounting and finance professionals must be able to
generate and disseminate the appropriate information to a wide variety
of stakeholder groups. Organizations, regardless of the specific industry
or whether or not they operate on a for-profit basis or as a not-for-profit,
have two primary functions that must be accomplished in order to continue operating on an ongoing basis. First, organizations must create
more resources through operations than those consumed via operations,
and second, organizations must effectively allocate existing resources that
are available to the management team.
Stakeholder Reporting
Stakeholder reporting, mentioned previously as an introduction before
being expanded upon later, is the theoretical underpinning of both integrated reporting and SMA. Stakeholder-oriented reporting is, almost by
default, a broad-based approach to dealing with the necessities of the
post-financial crisis business environment. In an environment increasingly driven by both financial and nonfinancial information, a more
integrated accounting team is necessary to satisfy decision making
10
12
logical to conclude that these professionals will have the ability to explain
this information to both internal and external users. The ability to articulate, explain, and connect to the broader business issues at hand are
key characteristics of strategic thinking. Accounting professionals must
embrace such a mindset to evolve and elevate the work product currently
produced. Two specific areas of importance to integrated reporting and
SMA are corporate governance and sustainability.
Strategic Management Accounting & Governance
Linking back to the concept of integrated financial reporting and several
of the critical components therein, specifically corporate governance and
sustainability matters, management accountants are already involved in
updating and improving reporting and disclosures to external stakeholders. Yahoo, the U.S.-based e-commerce organization, as well as Alibaba
are both examples of how corporate governance concerns can significantly
affect financial performance and managerial concerns. Under new leadership, Yahoo, beginning in 2013, embarked on a string of high-profile
acquisitions and personnel hiring that led to increased scrutiny as core
operations continued to grow sluggishly, and eventually became stagnant
in 2014 and 2015. During this time, up until the end of 2015, sluggish
operations and lackluster management results were overshadowed by the
significant ownership stake held by Yahoo in the Chinese e-commerce
giant Alibaba. Complicating the situation further, disclosure of a 2014
data breach was only made public in 2016, jeopardizing the potential
sale of Yahoo to Verizon. Following the IPO of Alibaba, however, investors were able to invest in Alibaba directly instead of purchasing Yahoo
shares as a tracking tool. The increased scrutiny combined with a lack of
management strategy and narrative led to a depressed valuation of the
organizations shares. The fate of a once cutting-edge Internet and technology organization boiled down to whether or not the core assets of the
business could be sold off to a larger telecommunications organization
or to a private equity organization. Better governance and governance
data management might not have been able to prevent this, but it would
have at the very least made analysis simpler and less complex through
improved communication and data clarity.
14
16
reporting tools, are also raised as critical areas of concern for educators and
future members of the accounting profession. Building bridges among
academics, practitioners currently in the field, and upcoming members of
the profession is an essential step in developing and maintaining the concept of SMA and fully realizing the implications of such a methodology.
The connection, among research, academia, and practitioners working in industry, is an important partnership to develop and maintain.
Stepping back from the discussion at hand, the accounting profession
faces a somewhat frightening set of circumstances. First, the profession as
a whole, both in the United States and abroad, is facing a significant graying risk, that is, the average age of accountants is increasing faster than
before. Compounding this situation are both the growing competition
for analytic and financial information, and a growing prevalence among
accounting and finance students to not actively pursue certifications. In
order to effectively combat such trends, this partnership must be able to
present a viable career path with a multiplicity of options. SMA, and the
options therein, provide options that are appealing in both the current
and future marketplaces.
Even organizations that do not, at first glance, have a large environmental footprint such as service or technology organizations, can benefit
from integrating sustainability into the accounting and finance practices
used by the organization. In addition to the informational benefit of
improved insights regarding sustainability initiatives, virtually every organization can receive a financial benefit from integrating sustainability into
operations and management practices. Understanding the cost/benefit
ramifications of renewable energy or sustainability-oriented projects
should be of top priority for senior management teams across industries.
This increasing importance provides yet another opportunity for strategically oriented and strategically minded accounting professionals to align
themselves with higher level analytics and decision making.
18
accounting function continues to evolve and develop. Integrated reporting, combined with the emerging trends toward a more strategic role for
the accounting profession, lays the broad groundwork and foundation for
such data distribution.
Several areas stand out as particularly applicable to the changing
nature of the accounting profession, including integrated financial reporting, corporate governance, sustainability, stakeholder-oriented reporting
at large, and the increased prominence of SMA. SMA, at the core, is
caused by the transition and evolution of financial reporting from backward and historically focused information to a forward-looking analysis
of ongoing performance. Prior to forecasting the current implications and
future developments linked to these themes, however, it is critical that a
deeper dive be conducted on integrated reporting and the implications
therein. Understanding both the concepts themselves, and more importantly, the linkages between them, creates a superior level of understanding and ability to critically analyze both the concepts and the implications
for accounting professionals. Put simply, in order to truly understand the
implications of SMA and IR, it is practical to revisit them and examine
how, specifically, these topics fit together.
Integrated ReportingImplications
Integrated financial reporting, often abbreviated with the acronym IR,
represents both a new framework for financial reporting and an evolution related to how organizational information is communicated to
financial and nonfinancial shareholders. Traditional financial reporting,
characterized in U.S. markets by the reference markers 10-Q, or 10-K,
is designed and prepared for a limited group of end users, specifically
shareholders or creditors. Presented in a standardized format, consisting
of standardized components, the information contained within these
reports is dense, quantitative, and technical in nature, focused on events
that occurred during the previous quarter or annual period. Such consistency, related to both the information contained within the reports as
well as the framework of the reporting, provides several benefits to end
users. First, the information contained within the financial statements
is consistent and comparable with prior periods. Second, regardless of
20
understand and interpret the data correctly. These requirements limit the
usefulness of the data, and limit the positive benefit of communicating
such data. Third, and of increasing importance, is that traditional financial reporting does not contain information related to emerging areas of
importance. While depending on the industry or organization in question, the specific areas of investor focus may vary, the realms of corporate
governance, sustainability, and integrating risk management into strategic planning are of growing importance for business decision makers
across the board.
What integrated reporting attempts to do is twofold, and these two
parts are interdependent on each to succeed. First, integrated reporting,
at the core of the concept, represents an evolution of financial reporting and communication to include elements of nonfinancial information
and provides this information on a more real-time basis. Management
accounting professionals are obligated to both fulfill these needs and to
assist in the business decision-making process. Organizations are increasingly interconnected to, and held accountable by, the environments in
which they operate, and stable and productive relationships are dependent on open lines of communication. Akin to how poor or inconsistent
communication can hamper an individual department or organization,
poor communication between an organization and its stakeholder base
can have a detrimental effect on the organization. These ramifications,
focused on the external benefits and attributes of integrated financial
reporting, are merely what is presented externally to the marketplace.
In order to produce and sustain such a reporting framework, however,
substantive changes must be undertaken and embraced within the
and SMA are clear and readily apparent to those seeking to connect the
concepts. While SMA is akin to a conceptual framework and base from
which to further develop ideas and plans of action, the structure of integrated financial reporting provides a vehicle within which SMA can grow
and develop. Put simply, SMA is a theory that was in need of a more
quantitative framework to assist with communicating the concept itself,
as well as in implementing the ideas of SMA within organizations.
Guidelines
To best sustainably produce and disseminate such information it is logical
to utilize internal resources currently tasked with the creation, dissemination, and maintenance of information to external users. Management
accountants are already involved in the production of the raw information contained in traditional financial reports as well as the finalization of
the presentation that is communicated to end users. Familiar with quantifying information, creating templates that are clear for external users to
understand and developing metrics to benchmark against and compare
results, management accountants are well equipped to address the challenges inherent when implementing an integrated reporting structure.
Additionally, and while most clearly evidenced at the CFO level, management accounting professionals are increasingly tasked with information
technology roles, that is, assisting in system upgrades. This experience
and hands-on practice with the development, testing, and refinement of
technology systems provide additional insights into how the organization
operates.
What integrated reporting attempts to accomplish, in short, is to
transform into reality the concept that the management accounting function is, in fact, comprised of multiple layers and responsible for multiple
directives from management. Finance holds multiple roles within organizations, and influencing decision making in a wide variety of waysonly
some of which are readily apparent to external users of organizational
data. Two specific areas influencing and impacting the role of the finance
function and organizational effectiveness have to do with the general
operating environment and the increasing integration of information
technology and accounting (Hsihui, Ittner, and Paz 2014). Emerging
22
linkages and connections such as these, particularly the greater connection between IT and accounting, hold profound implications for the profession. Integrated reporting and SMA at large require that accounting
professionals have access to greater quantities of organizational data as
well as the ability to make sense of such information. Expanding on these
themes is a core directive of proponents seeking to promote and expand
SMA within the profession. Reporting, to both financial and nonfinancial reporting stakeholders, requires that information is collected and
presented in a consistent format that makes sense to the end users. Leveraging existing strengths of the profession to meet the varied needs of
stakeholders, in conjunction with an integrated reporting framework,
provides a clear and market-oriented path that management accountants can take to amplify professional strengths while also moving into a
more strategic role. While every organization is different, the following
guidelines and principles should be factored into the implementation of
a more SMA function.
1. Link strategy, operations, and reportsdisseminated to end users
by producing the breadth of information, and distributing it in the
appropriate venue for each stakeholder group, that modern marketplace conditions dictate.
2. Connect information with the front and back endorganizations
have vast quantities of data, but must be able to interpret and efficiently glean business insights from this information.
3. Understand what integrated reporting representsif stakeholders request additional information and analytics on sustainability or
governance, an IR initiative provides an opportunity to proactively
develop such areas.
4. Focus on what the information illustratesreporting, regardless
of form, is a business necessity, but that does not mean it should
be treated only as an expense item if management can leverage the
information into insights and business actions.
5. Look forwardinsights into risk management, supply chain operations, and the needs of stakeholders, including customers, provide a
roadmap for decision making moving forward: management should
use the map.
A challenge that many organizations face is that, while the information exists within the organization, the procedures for extracting that
information and making it usable for business decision making is not
ideal. Developing procedures, reports, and templates to collect information from business operations should be an optimal focus for management
teams. Without quality information, it is next to impossible to successfully execute plans at either the tactical or strategic level. Management
accounting professionals are often already embedded within functional
silos of the organization, and have experience interpreting operational
data into financial information, and this is the core of what SMA represents. In essence, and specifically as it pertains to integrated reporting,
the underlying focus of SMA is the ability of accounting professionals to
take operational results, data, and metrics that are generated by the organization, and translate those into financial or other quantitative information that can be used to make informed decisions. The true value, and
role of SMA, however, is not simply in creating information to be used by
othersit is the interpretation and utilization of the information itself.
Integrated ReportingThe Multiple Capital Model
Embedded within an integrated financial report, and critical to the differentiation of this reporting model from traditional financial reporting, is
the fact that the reporting framework introduces multiple types of capital.
The six capitals, and the ramifications of the inclusion of this information
is reporting, is a subject of analysis and debate in both academic and
practitioner fields. In addition to existing scholarly literature, there is a
growing amount of practitioner- and market-based research on the six
capitals, the implications therein, and methods by which accounting professionals can utilize such a multiple capital model. Virtually by default,
the materials proposed by such a model include quantitative data as well
as qualitative information.
Implications associated with the multiple capital models, as they are
linked to the concept of SMA, are difficult to overstate. The reality of the
situation is that organizations are judged increasingly by not just how
they perform on a financial basis, but how sustainable and comprehensive that performance truly is. A multiple capital model provides a way in
24
which organizations can communicate this much broader set of information to stakeholders doing so in a format that is logical, consistent, and
meaningful to the individuals and organizations receiving this information. That said, the responsibility for implementation and maintenance of
such a multiple capital model lies with the management accounting professionals seeking to benefit from it. Arguably, the most important step
in developing and sustaining integrated reporting and a multiple capital
model to support it is for the management accounting professionals in
charge of implementation to ask the correct questions.
Focusing on which questions to ask which people is perhaps not the
most accurate way to characterize this important step. Rather, it is the idea
that accounting professionals must think creatively and in a nontraditional manner in order to effectively address the challenges and opportunities that are embedded within the implementation phases of a multiple
capital model and a broader integrated financial report. In order to achieve
a more strategic role in the organization and organizational decision-
making process, it is logical to suppose that management accountants
must embrace a more strategic mindset. That said, it is also important to
take into account the difficulty of the reality of attempting to think strategically in a manner that also makes business sense during the day-to-day
bustle of the organization. The multiple capital model embedded within
an integrated financial report provides a way for management accountants
to think strategically in a way that makes logical sense.
26
an integrated report. When viewed through the lens of broader corporate governance issues, however, the importance and relevance of these
capital classes to business decision making become increasingly clear.
Brought to the forefront of many firms via activist campaigns and other
shareholder-driven calls for change, corporate governance focuses on how
the organization interacts with internal and external stakeholders. Often,
an argument underpinning an activist campaign focuses on the fact that
initiative, or entire business segments, are operated in a way not in the
best interest of shareholders. While the stakeholder-oriented model of
reporting and management is increasingly acknowledged in both academic and practitioner press as reality, it remains a challenge to convince
many management decision makers. Developing metrics and benchmarks would help make this case and proposed model much stronger and
easier for organizations to adopt. Fortunately, there are trends, organizations, and items occurring in the marketplace that can assist management
accountants seeking to develop a strategic accounting model.
Quantitative versus Qualitative
While it is a reasonable statement to say that business decision making is,
for the most part, driven by quantitative data, statistical information, and
statistics that can be tested and verified, it is also important to remember
the importance of qualitative data. Qualitative information, and more
broadly, the ability of management professionals to understand, discuss,
and explain the data produced by the organization are essential. Simply
distributing reports of financial information is not enough. Explanations
and a narrative must accompany that data to make it useful for business
decision making. This concept, the necessity of explanation and a supporting narrative structure, is even more critical for emerging areas such
as governance, sustainability, and the integration of risk management into
the planning process. Developing metrics and deciding what to measure,
of course, is a significant area in which management accountants can add
value to their organizations. In order to develop metrics to quantify such
information, however, management accountants as well as other decision
makers must understand the purpose of gathering such information. In
essence, in order to produce key performance indicators, the first step is
to develop and test key performance questions, which in turn drive the
data collection, analysis, and reporting undertaken by the organization.
Understanding what questions to ask, and how to integrate the needs
for information into standardized metrics and tools requires a strategic mindset, or strategic headset. Inherently qualitative in nature, the
meaning and purpose of strategic headset is relatively straightforward.
In order to best guide the organization forward, the key decision makers must have a strategic plan or orientation for the organization. Formulating and walking the strategic plan through the various necessary
iterations is inherently qualitative, that is, this process requires the ability
to think holistically about the organization and to articulate positions
and views. That said, in addition to being able to think and articulate
positions clearly, strategic thinking and planning are supported by quantitative information. How this information is obtained, however, is by
asking the correct questions and being aware of how to start formulating
those specific questions. Embracing the strategic headset, in and of itself,
requires that accounting professions broaden the scope of thinking and
consideration, that is, they must be aware of factors outside of traditional
accounting and finance thought that influence business decisions.
Linking together the required pieces of qualitative and quantitative
information is a key aspect of both organizational decision making and,
specifically, the development of an accounting function well situated to
compete and provide value in an increasingly globalized and competitive
environment. Connecting the dots specifically to the idea and implications of integrated financial reporting, Cohen, Holder-Webb, and Zamora
(2015) expand existing research and findings related to the inclusion of
nonfinancial information within a broad and more inclusive framework,
the essence of integrated financial reporting. While the particular section
of nonfinancial information examined is corporate social responsibility-
linked data, the ramifications of the research can and should be applied
to the broader field of nonfinancial data.
Building the bridge between the quantitative source data, or foundation, and the surrounding narrative or qualitative information forms the
foundation of strategic thinking and planning. Utilizing integrated financial reporting, including aspects of sustainability, corporate governance,
and risk management in the information disseminated to stakeholders
28
30
Linking back to the analysis of Cheng et al. (2014), there is one area
in particular that appears to present an opportunity for further integration of accounting into the strategic planning and decision-making
process, and this is the assurance and attestation of integrated reporting. Nonfinancial information and other information included within
an integrated reporting framework are, clearly, a new area of data to be
reported and disseminated to stakeholder groups. Developing and standardizing assurance and auditing standards represent a core professional
competency of the accounting profession, but extending these current
strengths to the new area of nonfinancial information is imperative. In
addition to creating value for the organizations in question, and assisting
management in decision making, such development also provides material for scholarly research and assists in increasing the validity with which
nontraditional information is accepted in the marketplace.
Additionally, information that has been traditionally compiled and
disseminated, namely financial data, must be communicated at a more
rapid rate to meet the growing demands of stakeholders. Integrated financial reporting, strategic thinking, and the strategic headset are interconnected and reflect the same core reality. Business must be flexible and
adaptable to meet the challenges of a globalized world. Now that integrated reporting has been analyzed at a high level, however, it is important
to dig deeper into certain areas to understand just how this data could
impact an organization, and how a more strategically inclined management accounting function can assist and add value to their organization.
Index
Accounting and analytics
accounting professionals, 5556
audit and fraud-detection
procedures, 55
audit process, 4950
big data, 51
business planning, 50
business process management, 51
data experts, 5355
data integrity and reporting, 56
organizational silos, 56
organizational support, 5758
practitioner perspectives, 50
presentation tools and graphics,
136137
regression analyses, 52
stakeholder decision making
exploratory research, 121
information visualizing, 120
key performance questions, 119
presentation, 121
quantitative information, 120
quantitative methods, 119120
stakeholder requirements, 49
strategic headset, 5253
strategic management accounting,
122123
Ambassadorship, 8788
Business process management (BPM)
accounting professionals role, 92
advocacy and campaigning, 86
ambassadorship, 8788
analytics and big data, 89
business decision-making process,
9293
competitive and regulatory
landscape, 91
corporate governance, 8182
digitization, 81
190 Index
Dodd-Frank Act, 13
Dow Jones Sustainability Index
(DJSI), 44
Enterprise Resource Planning (ERP)
system, 108
Finance 2.0
accounting
business decisions, 7576
business problem, 7475
information delivering, 74
leadership aspect, 75
business process management
accounting professionals role, 92
advocacy and campaigning, 86
ambassadorship, 8788
analytics and big data, 89
business decision-making
process, 9293
competitive and regulatory
landscape, 91
corporate governance, 8182
digitization, 81
disruption and industry-wide
change, 89
ERP system, 108
integrated reporting, 8285
internal and external
stakeholders, 93
leveraging technology, 80
nontraditional and qualitative
information, 77
operations and senior leadership,
91
organizational cohesion, 7980
organizational demands, 76
Porters Five Forces, 8081
process improvement, 7677
quantitative financial
information, 77
reporting and compliance
requirements, 79
stakeholder reporting, 90
strategic management
accounting, 7779
strategic plans, 9091
technology, 76
Index 191
192 Index
integrated thinking, 19
management accounting, 1011
multiple capital model, 7, 2324
new market requirements, 7
nontraditional measures, 6
organizational performance, 6
senior-level decision makers,
910
stewardship role and mindset, 17
strategic accounting function,
1112, 1718
strategic initiative, 11
substantive paradigm shifts, 17
sustainability (see Sustainability)
traditional financial reporting, 18
transition and evolution, 18
internal communication, 5960
IT and financial management,
110113
leadership, 59
legacy information systems, 60
metrics, 163166
models for change, 180
multiple capitals, 116117
nontraditional reporting, 2
operational aspects, 110
organizational leadership, 6061
PowerPoint presentations, 150151
predictive analytics
future results, 103
operations and financial
leadership, 103104
quality improvement, 101102
relationship building, 105106
revenue and cost drivers,
104105
strategic thinking, 103
traditional budgeting and
forecasting, 102
profession transitions, 60
reporting, 107108
stakeholder landscape
accounting and finance
functions, 4
accounting professionals, 4
business decision making, 34
business issue, 23
chief financial officers, 4
externalities, 5
Index 193
nontraditional stakeholders, 3
operational information, 3
stakeholder reporting
accountants, 9
financial reporting process
valuation, 89
multinational aerospace
organization, 8
post-financial crisis business
environment, 8
qualitative and quantitative
information, 9
strategic bets, 147148
strategic headset, 180181
team development, 113114
temporary organizations, 145
Sustainability
adding value, 4445
Adidas, 141143
bottom-line analysis, 41
business decision making, 141142
challenges, 15